Editorial: `Li Land' a harbinger of ill

Recent developments in Hong Kong are worthy of note. First, the ownership of Internet and communications industries in Hong Kong is becoming more and more concentrated in the hands of politically well-connected tycoons and financial conglomerates, making it look much like the industrial structure of China. Second, Beijing's political control over Hong Kong has completely drained any "autonomy" from the former colony under the pretense of implementing the "one country, two systems" program, going so far as to deny Taiwan's representatives in Hong Kong visas, further souring relations between Taiwan and Hong Kong.

Over the past two weeks, Hong Kong mega-tycoon Li Ka-shing (李嘉誠) has shown the immense power his family wields over the territory's economy. An estimated 400,000 Hong Kongers first scrambled to purchase stock in Li's Web portal TOM.COM as it listed on the second board of the Hong Kong Growth Enterprise Market last week.

The listing only took place, however, because of the close relations between the company's management and the government. Li Ka-shing was able to have his way because of his relations with Hong Kong Chief Executive Tung Chee-hwa (董建華) and the authorities in Beijing.

Later, the successful purchase of Cable & Wireless HKT by Li's second son, Richard (李澤楷), kept ownership away from Singaporean capital, but only after loans extended to Richard Li by the Bank of China gave him the funds to take over the 100-year-old British telecom company for a staggering US$35.9 billion.

Pacific Century CyberWorks Ltd (盈科動力) is now the third-largest company listed on the Hong Kong market, smaller only in scale than China Telecom and HSBC. The deal also made Richard Li the second-richest individual in Hong Kong at the tender age of 33, with a wealth only exceeded by his father, Li Ka-shing. Father and son now control stock in industries accounting for about 30 percent of the entire value of Hong Kong's stock market. This shows how powerful families in Hong Kong have expanded their influence over the economy. Pundits in local papers have started giving Hong Kong the title, "Li Land."

In addition to a growing concentration of economic power in Hong Kong, the former colony is also swiftly developing into a proxy for China to demonstrate the feasibility of the "one country, two systems" concept for Taiwan.

It has become quite apparent that many of the actions of the special regional administration in Hong Kong are being undertaken on orders from Beijing. Afraid of going against Beijing's wishes, the government sets limits on actions that might rock the boat of the cozy Beijing-Hong Kong relationship. The media in Hong Kong -- having given up its role as government watchdogs -- likewise preempts Beijing by self-censoring its own reporting.

Worse still, Macao has begun to take lessons from Hong Kong and started denying visas to Taiwan representatives. Again, the government in Macao is trying to second-guess Beijing's intentions and is sacrificing its autonomy in the process.

The actions of the Hong Kong administration will only impede the development of cross-strait relations, while Beijing's misguided use of Hong Kong as a showcase for the "one country, two systems" model for Taiwan will only alienate and anger people here.

If the "one country, two systems" experiment in Hong Kong leads to the concentration of ownership and loss of governmental autonomy as we have seen, then in addition to our heartfelt sympathy for those who must suffer the government there, our reply to Beijing's insistence on "one country, two systems" is simple: forget it.